Avenue Nissan: Service Department and Customer Satisfaction Report

This report examines customer satisfaction at Avenue Nissan, a Toronto automotive dealership, with a specific focus on the service department. The research investigates the impact of service quality on customer satisfaction, exploring factors such as employee turnover and its effect on customer retention. The report includes a literature review covering customer satisfaction, service quality dimensions, and relevant models like Oliver's Satisfaction Quality Model and the SQCS model. The methodology section outlines the research approach, including data collection methods. Findings from secondary data and interviews are analyzed to identify areas for improvement. The report concludes with recommendations aimed at enhancing customer satisfaction through improvements in the service department, addressing issues related to service quality, and employee management. This report provides a comprehensive overview of the challenges and opportunities for Avenue Nissan to improve customer satisfaction and maintain a competitive edge in the automotive industry.

Running head: IMPROVING CUSTOMER SATISFACTION AT AVENUE NISSAN WITH A
FOCUS ON SERVICE DEPARTMENT
Improving customer satisfaction at Avenue Nissan with a focus on Service department
Name of the Student:
Name of the University:
Author Note:

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IMPROVING CUSTOMER SATISFACTION AT AVENUE NISSAN WITH A FOCUS ON
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Executive summary
The automobile industry is facing tremendous competition nowadays and in order to gain
competitive advantage over the others, it is necessary for the companies to emphasize upon it
service quality along with the quality of the products. Avenue Nissan is an automotive franchise
dealership that is located in midtown Toronto. A major issue faced by the store has been
insufficient number of service representatives as a result of high rate of employee turnover. The
report deals with the improving customer satisfaction at Avenue Nissan with a focus on service
department. The researcher has used qualitative research data in order to find the causes behind
the lower level of satisfaction among the customers and the ways by which the issues can be
solved.

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IMPROVING CUSTOMER SATISFACTION AT AVENUE NISSAN WITH A FOCUS ON
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Acknowledgement
The research conducted by me has been one of the enriching experiences of my life. This
research helped me in gaining enhancing experience by providing me the understanding to
skilfully carry out the research. The research helped me in overcoming the drawbacks by facing
them skilfully. However, this would not have been possible with the help and encouragement I
received from my professor. I also received the encouragement from my peers and all the people
who helped me carry out the research. I would like to thank my supervisor
_______________________________ for the constant support and encouragement to carry out
the research. It would not be right if I do not thank my academic guides who have constantly
assisted me in the research. I would also like to thank by friends who helped and encouraged me
for the research. Finally, I would like to thanks the customers who participated in the survey that
was conducted to gain primary data. Last but not the least I would like to thank the managers
who gave me their precious time to carry out the interview. The support of all these people has
been enhancing and inspiring throughout the research process.
Heartfelt thanks and warmest wishes,
Yours Sincerely,

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IMPROVING CUSTOMER SATISFACTION AT AVENUE NISSAN WITH A FOCUS ON
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Table of Contents
Chapter 1..........................................................................................................................................5
Introduction......................................................................................................................................5
1.1 Background............................................................................................................................5
1.2 Purpose of the project............................................................................................................5
1.3 Aims and objectives...............................................................................................................5
1.4 Research questions.................................................................................................................6
1.5 Summary:...............................................................................................................................6
Chapter 2..........................................................................................................................................7
Literature review..............................................................................................................................7
2.1 Meaning of customer satisfaction:.........................................................................................7
2.2 Factors influencing customer satisfaction.............................................................................7
2.3 Importance of customer satisfaction......................................................................................8
2.4 Concept of service department..............................................................................................8
2.5 Importance of service department.........................................................................................9
2.6 Impact of service department on customer satisfaction.........................................................9
2.7 Dimensions of service quality...............................................................................................9
2.8 Service quality models.........................................................................................................10

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2.8.1 Oliver’s satisfaction quality model:..................................................................................10
Figure 1: Oliver’s Satisfaction Quality Model......................................................................11
2.8.2 Service quality and customer satisfaction (SQCS) model................................................11
Figure 2: Service quality and Customer Satisfaction (SQCS) Model...................................12
2.9 Summary..............................................................................................................................12
Chapter 3........................................................................................................................................14
Research methodology...................................................................................................................14
3.1 Introduction:........................................................................................................................14
3.2 Types of investigation:........................................................................................................14
3.3 Justification of the chosen type of investigation..................................................................14
3.4 Data collection methods......................................................................................................14
3.5 Justification of the chosen data collection method..............................................................15
3.6 Data analysis plan................................................................................................................15
3.7 Accessibility issue...............................................................................................................16
3.8 Ethical issues.......................................................................................................................16
3.9 Research limitations.............................................................................................................16
3.10 Summary............................................................................................................................16
4. Findings and analysis:................................................................................................................18
4.1 Secondary data findings and analysis..................................................................................18
4.2 Interview findings and analysis...........................................................................................19

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Chapter 5........................................................................................................................................23
Conclusion and recommendation..................................................................................................23
Conclusion:....................................................................................................................................23
Recommendations:....................................................................................................................23
References:....................................................................................................................................24

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List of figures
Figure 1: Oliver’s Satisfaction Quality Model..............................................................................13
Figure 2: Service quality and Customer Satisfaction (SQCS) Model...........................................14

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Chapter 1
Introduction
1.1 Background
Avenue Nissan is an automotive franchise dealership that is located in midtown Toronto
since 1981. Automotive dealerships in North America typically operates with four major
departments: New Vehicle Sales, Pre-owned Vehicle Sales, Service and Parts. It offers sales and
services of Nissan vehicles to consumers.
For the past 35 years, Avenue Nissan has gone through three ownerships. Customer
retention has fluctuated over the years due to the turnover of employee. Customer satisfaction
with the last regime ownership has damaged the store reputation.
1.2 Purpose of the project
The purpose of the research is to analyze the impact of the efficiency of service
department of Avenue Nissan on customer satisfaction. The researcher has analyzed the impact
of service quality by finding the relationship between service quality and the level of customer
satisfaction.
1.3 Aims and objectives
The major aims of the research are as follows:
 To understand the impact of service quality on the customer satisfaction
 To determine the ways of improving customer satisfaction at Avenue Nissan with a
focus on service department

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 To determine the necessary changes that are required to improve the customer
satisfaction at Avenue Nissan
1.4 Research questions
The following are the research questions for this research proposal:
 What are the methods by which customer satisfaction at Avenue Nissan can be improved
with a focus on service department
 How does the service department at Avenue Nissan work and what are the necessary
changes required?
1.5 Summary:
The introduction part of the dissertation introduced Avenue Nissan as an automotive
franchise dealership located in Toronto. This part mentioned the purpose of the dissertation along
with the aims and objectives. At last, this part mentioned the research questions.

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Chapter 2
Literature review
2.1 Meaning of customer satisfaction:
Customer satisfaction refers to the amount of positive outcomes derived by a consumer
on using a product or service. It is the positive experience of a customer that is derived when the
expectations of a customer meets the actual benefits derived from the use of a product or service.
Jahanshani et al. (2014), termed customer satisfaction as a person experience of a customer,
which varies from one person to another on the basis of their needs, wants and expectations.
Therefore, customer satisfaction can be referred to as the amount of fulfillment derived by a
customer after purchasing and using a product or service. When a customer is satisfied, the
product or service is referred to as value for money as the price paid by the customer is
equivalent to the satisfaction derived by the customer (Orel & Kara 2014).
2.2 Factors influencing customer satisfaction:
There are various factors that influence the customer satisfaction. According to Bansal &
Taylor (2015), the customer satisfaction is highly dependent upon the quality of products and
services and their price. There are different types of customers who have different needs and
expectations. In case of a customer who is more concerned about the quality, the customer is
satisfied when the quality of the goods and services meet his or her expectations. Such a
customer is even ready to purchase a product or service at a higher price when it is of good
quality. In case of a price sensitive customer, the price of a product or service becomes a more
important factor while determining the level of satisfaction. The lower the price, the higher is the

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satisfaction derived by such customers. Such customers do not emphasize upon the quality of the
goods and services instead, they emphasize upon the price of the products or services. The
customers who emphasize more upon the brand and goodwill of a company tend to derive
satisfaction on purchasing goods and services from some reputed company. The satisfaction of a
customer is also dependent upon the word-of-mouth. In such a case, a customer derived
satisfaction when he or she hears positive review of the products or services purchased by him or
her. On the contrary, if such a customer hears negative review post purchase, he or she tends to
become dissatisfied. The efficiency of the organizations in providing services and handling
customer grievances also determines the level of customer satisfaction (Delcourt et al. 2013).
2.3 Importance of customer satisfaction:
According to Yoon et al (2016), customer satisfaction is essential for the long-term
growth and survival of an organization. An organization can survive in the long- run only when
its customers are satisfied. The satisfied customers tend to become the loyal customers in the
long-run and get involved in repeated purchases. It is necessary for the organizations to satisfy
their customers to retain their customers and increase the new customers in the highly
competitive environment. It is necessary to satisfy a customer in order to prevent the customers
from shifting to some other brand or organization. Therefore, customer satisfaction is the key to
the success of an organization in the long-run.
2.4 Concept of service department:
Service department refers to the department that comprises of individuals who are
responsible for providing the necessary services to the customers and handling the customer
grievances. The companies under product industry as well as the service industry have their own

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service departments that is responsible for providing products and services to the customers
within the due time, maintaining good relationships with them, maintaining the customers and
handling their grievances (Sengupta, Balaji & Krishnan 2015).
2.5 Importance of service department:
According to Kaguara (2016), service department is essential for establishing cordial
relationships with the customers and retaining them. The quality of the service provided to the
customers is highly dependent upon the efficiency of the individuals employed in the service
department. These employees are responsible for providing prompt solutions to the problems
faced by the customers. Therefore, it is essential for the service departments to be careful and
emphatic while handling the grievances of the customers.
2.6 Impact of service department on customer satisfaction:
Nowadays, the satisfaction of the customers is not just limited to the purchase of the
products but is also dependent upon the after-sale services provided by the companies. In case of
a car manufacturing company, the satisfaction of the customers is not just dependent upon the
quality and price of the cars but also the quick and prompt services provided by the company.
Therefore, the efficiency and the effectiveness of the service department affects the level of
satisfaction of the customers (Mok, Sparks & Kadampully 2013).
2.7 Dimensions of service quality:
There are several dimensions of service quality, which involve reliability, responsiveness,
assurance, empathy and tangibles. Reliability refers to providing the service within the promised
time duration with accuracy. Responsiveness refers to the willingness to provide assistance to the